How to Use This Presentation Flood insurance is a critical part of any mitigation plan. A better insured community is a resilient one. Use this presentation to educate insurance agents on flood risk and the importance of selling flood insurance. This presentation is virtually ready to use immediately: Customize or delete information on slides 2 and 30 based on your specific needs. Once you update the necessary slides and delete this instructional slide, you are ready to present. Questions or Comments? Please contact

Financially Protect Your Clients and Your Business with Flood Insurance [ORGANIZATION NAME] [YOUR NAME] [DATE] [Organization Logo]

 National Flood Insurance Program  Flood Insurance Basics  Flood Misconceptions and Facts  Combatting Misconceptions  Resources for You Presentation Overview

National Flood Insurance Program

 Created by Congress in 1968 and administered by the Federal Emergency Management Agency (FEMA).  Provides flood insurance to homeowners, renters, and business owners.  Communities participate in the program and enforce sound floodplain management ordinances.  Written by insurance agencies through their carrier or direct with the NFIP (rates and coverage are the same for all agents). National Flood Insurance Program (NFIP)

 Everyone is at risk for flooding.  Anywhere it can rain, it can flood.  Just a few inches of water can cause tens of thousands of dollars in damage. Why Flood Insurance?

What Is a Flood?

A Flood Defined Inundation of 2 or more acres of normally dry land or of two or more properties (one of which is your property) from:  Overflow of inland or tidal waters;  Unusual, rapid accumulation or runoff of surface waters from any source;  Mudflow; or  Collapse or sinking of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated levels that result in a flood.

Flood Insurance Basics

 Single-peril policy.  Pays Replacement Cost Value on single-family, primary residences if insured to at least 80 percent of the building’s replacement cost.  As much as $250,000 in coverage.  Pays Actual Cash Value (depreciated cost) on second homes and underinsured homes.  Contents coverage is not automatically included in the policy (with the exception of a Preferred Risk Policy).  As much as $100,000 in coverage.  Pays Actual Cash Value. Three Basic Facts of a Standard Flood Policy

 Flood Zone  High risk: Flood insurance is required if mortgage is from a federally regulated or insured lender (Zones A or V).  Moderate to low risk: Flood insurance is not required. But while the chance of flooding is reduced, it is not eliminated (Zones B, C, or X).  Elevation for High-Risk Areas  Coverage and Deductibles  Date of Construction Key Rating Elements

 Typically, there is a 30-day waiting period for a flood insurance policy to go into effect.  Exceptions  Flood Insurance is required by a federally regulated and insured lender—0 days.  Wildfire 30-day waiting period exception—0 days.  Initial purchase of flood insurance as the result of a map revision—1 day. Waiting Periods

 Policy for homes and businesses in moderate- to low-risk areas:  Lower-cost policy.  Policy includes both building and contents.  Contents-only coverage is available for renters. Preferred Risk Policy (PRP)

 Allows subsidized rates to transfer from one owner to another at the time of sale.  Rates for pre-FIRM primary residences will increase by no more than 18 percent per year until reaching full-risk rates.  Rates for all other buildings will continue to increase by no more than 25 percent per year until reaching full-risk rates.  Applies to fewer than 20 percent of flood insurance policies. Recent Legislation

 New surcharges require verification of primary residency:  Policies for primary residences—including owner-occupied, single-family detached buildings, individual condominium units, and rental units—will include a $25 surcharge.  Policies for all other buildings, including secondary homes, will include a $250 surcharge.  For more information, visit FEMA.gov/flood-insurance-reform. Recent Legislation

Check with the community floodplain management office for more information on mitigation activities, such as:  Installing proper flood vents  Elevating:  Home  Equipment and appliances (heating, cooling, washer, dryer) Reduce the Risk, Reduce the Cost

Flood Misconceptions and Facts

 Misconception: “I don’t live in a flood zone.”  Facts  Floods are the number 1 natural disaster in the United States.  If it can rain, it can flood.  Risk does not stop at a line on a flood map. Misconception: Risk

Perceived Risk vs. Actual Risk

 Misconception: “I’m already covered—my homeowners policy covers flooding.”  Fact: Most insurance policies do not cover flooding; only flood insurance covers flood damage. Misconception: Homeowners Coverage

 Misconception: “If a flood happens, disaster assistance will cover me.”  Facts  Only available if the President declares a Federal disaster.  You must qualify.  Typically given in the form of a loan that must be repaid with interest. Misconception: Disaster Assistance

Combating Misconceptions

 Help clients understand their risks.  Make the risk relevant.  Visualize the risk.  Talk about changing risk. Risk: Educate and Personalize Flood Risk Scenarios Tool

 Show them the consequences of flooding.  Remind them that Federal disaster assistance is not always available.  Share personal experiences from flood survivors. Cost of Flooding

 Explain the value of flood insurance. Cost of Flood Insurance 2014 Average Premium 2014 Average Claim High-Risk Flood Area $779$23,033 Moderate- to Low-Risk Flood Area $420$27,888

Resources for You

FloodSmart Tools and Resources Agents.FloodSmart.gov  Sign up for the FloodSmart Agent Referral Program.  Attend webinars.  Access talking points and barrier busters.  Download free interactive online tools.  Use free outreach materials and advertising templates.

Resources FEMA.gov msc.FEMA.gov

 Anywhere it can rain, it can flood.  Risk changes over time.  Most homeowners insurance does not cover flood damage.  Federal disaster assistance isn’t always available.  Compare the average cost of a policy to the average claim.  Typically, there is a 30-day waiting period for policies to go into effect. Key Points for Clients

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